US commercial or non-residential construction spending increased 0.3% to nearly US$1.26 trillion in February – the “highest level on record” according to Associated Builders and Contractors (ABC) chief economist, Anirban Basu.

ABC is a construction and contractor trade association in the US representing more than 20,000 members. The group analysed data from the US Census Bureau to determine the figures for the historic month of non-residential construction spending.

Basu said, “A surge in highway and street spending accounted for more than 40% of the monthly increase, and public sector non-residential spending is now up more than 6% on a year-over-year basis.”

On the specifics for February, spending was up monthly in nine of the 16 non-residential subcategories. Private non-residential spending increased 0.4%, while public non-residential construction spending was up 0.2% in February.

On the year, however, private sector commercial or non-residential construction spending was down. “Unfortunately, private sector spending has not kept pace and is up just 2.5% since last February, a rate of increase slower than economywide inflation,” Basu added.

Basu said contractor confidence remains high, despite potential headwinds for construction on the horizon.

“The mix of high interest rates, tight lending standards and unprecedented uncertainty regarding trade policy will continue to weigh on private sector construction in the coming months,” said Basu. “Despite these ongoing headwinds and the expectation that materials prices will rise as tariffs are implemented, contractors remain optimistic about their prospects over the next six months.”


Source: constructionbriefing.com